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Why trade on 1000xTrade: even a liquidation earns you PAPER

On most perpetual exchanges a liquidated position is simply gone. On Papertrade, which 1000xTrade trades on, every losing close and every liquidation mints PAPER to the trader, and staked PAPER earns a share of the protocol's USDC income.

Updated 29 Oct 2026 · 5 min read · 中文版

Key facts

  • Every losing close and every liquidation mints PAPER to the trader.
  • Staked PAPER earns USDC: half of every trading fee, plus LP surplus above a $5M cap.
  • No pre-mint, no team or investor allocation: every PAPER was minted to a trader.
  • Stake, unstake and claim from the PAPER panel in the terminal, with no lockup and no gas.

A liquidation is not the end of the story

On an order-book exchange, your loss goes to the trader on the other side, and a liquidation feeds the exchange's insurance fund. You walk away with nothing. On Papertrade your loss flows into the protocol's liquidity pool, which is what pays winning traders, and the protocol mints PAPER to you in return. The same happens on every losing close, not only on liquidations.

Turn PAPER into a USDC revenue share

PAPER is a fee-claim token. When you stake it, it earns USDC from two sources:

  1. Half of every trading fee. Winning closes pay a 2% fee on the gain, and losing closes and liquidations carry a 2% fee taken from the pool's side. Half of it goes to stakers, paid while the payout queue is empty.
  2. LP surplus. Once the pool's tracked profit grows past $5M, everything above the cap can be distributed to stakers.

Staking and unstaking are instant. There is no lockup, and you can claim accrued USDC to your trading balance at any time.

The traders own the upside

PAPER had a fair launch: no pre-mint, no team or investor allocation, no airdrop and no vesting schedule. The only way PAPER comes into existence is through traders' losses. The people who fund the pool are the same people who share its income.

What 1000xTrade adds

Compared with a typical perp exchange

Papertrade via 1000xTradeTypical order-book perp exchange
Where your loss goesLiquidity pool, and PAPER is minted to youThe other trader or the insurance fund
Revenue share for tradersStake PAPER for USDCNone
Entry priceHyperliquid mid, no slippage up to limitsAsk or bid, slippage grows with size
FundingNonePaid or received periodically
Max leverage1000x on BTC and ETHUsually 20x–100x

PAPER rewards depend on future trading activity and the state of the pool. They are not guaranteed, and losing money to earn PAPER is never a good trade on its own. Treat PAPER as a partial consolation, not a reason to take bigger risks.

Try it with a small size first

Connect a wallet, deposit at least 10 USDC and start with low leverage.

Open terminal